Save More, Pay More
- Don Mosier | Rimini Road
SDG&E will be adding a Base Services Charge of about $24/month to your electricity bill beginning in October of this year. This change in billing was authorized by Assembly Bill 205 passed in 2023. SDG&E explains the charge:
“The Base Services Charge covers some of the fixed costs previously included in the electric delivery price—like customer service, transformers, and meters that help ensure safe, reliable electric delivery to your property. By moving some costs out of delivery pricing, you may pay about 10% less per kWh for the energy you use (roughly 5 cents per kWh on electric delivery). Each customer’s usage varies, so lower electricity prices may or may not lead to a lower total bill. Because this is a reallocation of costs, SDG&E will not earn more profit from this change.” (Their profit was only $891 million in 2024!)
To break even, a residential customer would have to use 480 kWh of electricity/month. The average residential use for those served by the Clean Energy Alliance is about 400 kWh/month, so most customers will see an increase in their bill. Those Del Mar residents with high electricity use will get a slight reduction in their bill. However, those of us with rooftop solar will see a $24 increase/month since our delivery charges are based only on the energy we draw from the grid. Opponents of AB 205 rightly cited the negative impact of another disincentive to install solar systems or to conserve energy use.
This change in billing benefits the largest households with the highest energy use and penalizes smaller households and those with self-generation capacity with or without battery storage. It will increase the cost of electricity for older Del Mar residents with small homes and fixed incomes. It rewards consumption and punishes conservation.
The cost of electricity generation by SDG&E or the Clean Energy Alliance is not impacted by this new delivery charge. If you look at your current SDG&E bill, you will see that electricity delivery accounts for the largest charge, soon to be increased by $24.